Which of the following statements is correct concerning the auditor's opinion on internal control effectiveness?
A)The report describes any material weaknesses and discusses actions taken by management to remediate the problems.
B)The report does not discuss whether the control weaknesses were first identified by management or the auditor.
C)The report does not recognize the integrated nature of the audit and the effect of the material weakness on the planning of the financial statement audit.
D)The report identifies management's actions to remedy the prior year's control weaknesses.

Question

Quizplus · Accepted Answer

The auditor's report on the effectiveness of internal control over financial reporting does not specify whether the control weaknesses were first identified by management or the auditor. This distinction is not part of the report's objective, which focuses on the existence of material weaknesses as of the report date.

Which of the Following Statements Is Correct Concerning the Auditor's